Mr. Adam Coates reports

DECIBEL TO SELL ITS RETAIL CANNABIS STORES TO FIKA

Decibel Cannabis Company Inc. has entered into a binding agreement for the sale of the assets of its brick-and-mortar retail cannabis operations (Prairie Records) to Fire and Flower Inc., a wholly owned subsidiary of 2759054 Ontario Inc., doing business as FIKA, for approximately $3-million. Prairie Records comprises three cannabis stores in Alberta and three cannabis stores in Saskatchewan.

"Decibel remains committed to our core mission of delivering exceptional cannabis brands and products in Canada and around the world. The sale of Prairie Records marks a strategic decision in our growth journey, enabling us to focus resources and drive innovation in our core branded product business. We are dedicated to expanding and diversifying our premium product brand portfolio in Canada and globally," said Adam Coates, chief revenue officer. "Prairie Records continues to hold its place as one of the most unique and beloved cannabis retail brands in Canada. We are proud of Prairie Records' legacy, the team that helped make it a success and believe that FIKA is a great fit to continue serving Prairie Records customers now and into the future."

The transaction is subject to customary conditions of closing for a transaction of this nature and is expected to close before the end of first quarter 2024.

About Decibel Cannabis Company Inc.

Decibel is a consumer-focused cannabis company focused on delivering products that delight customers through a commitment to robust innovation and product quality. Leading brands General Admission, Qwest and Vox are among its portfolio sold both across Canada and beginning to extend toward new countries to create a global footprint. Decibel operates a processing and manufacturing facility in Calgary, Alta., and two cultivation facilities in Creston, B.C., and Battleford, Sask.

We seek Safe Harbor.